THE House Tax and Revenue Committee will hold a public hearing tomorrow to consider the value of the Australian Taxation Office adopting a regulatory philosophy to govern its engagement with taxpayers and other stakeholders as services are digitised.

The Committee’s review of the performance of the Australian Taxation Office (ATO) for the 2016–17 tax year has looked at how operational standards and frameworks affect taxpayers’ experience, as well as considering the function of the ATO’s systems and services themselves.

The Committee chair Jason Falinski MP said, “As the ATO’s trajectory towards full digitisation of taxpayer services matures, public concerns about the imbalance in the power relationship between the ATO and the community have grown."

“Tomorrow, the Committee will review the currency of the Taxpayers’ Charter as the ATO moves to full digitisation of services and consider whether it might be timely to update it or introduce a Regulatory Philosophy document to better safeguard taxpayer rights and protections," Mr Falinski said.

Introduced in July 1997, the Taxpayers’ Charter was drafted to assist taxpayers understand their rights and obligations and to describe the ATO’s service standards, complaint handling and review procedures as the agency moved to a self- assessment model of compliance.

The hearing will feature the Inspector-General of Taxation, who conducted a review of the Taxpayers’ Charter in 2016; Professor Valerie Braithwaite, from the ANU’s Regulatory Institutions Network, who was involved in the design of the ATO’s compliance model under self-assessment; and an Executive Officer from the Civil Aviation Safety Authority (CASA) who engineered and implemented the agency’s Regulatory Philosophy to reduce risk and build community trust in the regulator.

Public hearing details: 9am to Midday, Friday 29 June 2018, Committee Room 2S3 Parliament House

The hearing will be broadcast live at aph.gov.au/live.

Interested members of the public may wish to track the committee via the website.

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THIS week’s announcement by Labor, indicating they will reverse the recently implemented company tax cuts if elected to Government, is a threat to Australia’s family owned and operated small and medium businesses (SMEs).

“Company tax cuts announced in the 2018/19 Federal Budget, are good news for SMEs. They are sensible measures that help to deliver employment and investment opportunities for thousands of businesses and tradespeople. A reversal of these measures will have a significant and negative impact upon employment growth and the uptake of trade apprenticeships in Australia,” said Suresh Manickam, CEO National Electrical and Communications Association (NECA).

A significant number of Australian businesses are family owned SMEs with turnovers within the $10-$50 million bracket. It is these businesses, their employees and apprentices that will feel the brunt of Labor’s tax policy.

"It’s a kick in the guts to Australians who seek to get ahead," said Mr Manickam.

“Reversing these tax cuts creates economic uncertainty by undermining the Government’s long-term strategy of tax relief – and it's definitely not in the best interests of the electrical contracting sector. We're perplexed that the Henry Tax Review, commissioned by the former Labor Government, recommended a reduction in company taxes, and yet the current ALP leadership is recommending the opposite. NECA is struggling to understand this new position taken by the Opposition,” he added.

NECA calls upon the Opposition to reflect upon this announcement, and to reassess its position in the interests of national employment opportunities, apprenticeship growth, encouraging family businesses and the maintenance of a responsible and efficient tax system for Australia.

About NECA:

NECA is the peak industry body representing the interests of electrical and communications contractors Australia-wide. Membership comprises over 5,000 contracting companies with over 50,000 employees. NECA wholly-owns Registered Training Organisations and Group Training Organisations in NSW, VIC & WA, the EcoSmart Electricians initiative, ACRS (a national cabling registrar) and has a joint venture with NESS Super in NSW. NECA employs around 2000 apprentice electricians, training a further 2000.

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THE Joint Committee of Public Accounts and Audit has commenced inquiries into several areas of public sector governance, performance and accountability as part of its examination of Auditor-General’s reports.

Committee chair Senator Dean Smith said the JCPAA scrutinises the governance, performance and accountability of Commonwealth agencies, to examine whether public money is used in an efficient, effective, economical and ethical manner.

“As Parliament’s joint public administration committee, the JCPAA has an important role in holding Commonwealth agencies to account,” Senator Smith said.

The Committee has commenced the following inquiries based on audit reports:

• Commonwealth Financial Statements
• Defence First Principles Review and Naval Construction
• Australian Government Funding — Schools and Indigenous Health
• Australian Government Security Arrangements — Personnel Security and Domestic Passenger Screening
• Mental Health in the Australian Federal Police
• Foreign Investment Obligations in Residential Real Estate

The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

The Committee invites submissions to the inquiries, addressing the terms of reference. Public hearings will be held from August 2018. Further information about the inquiries can be accessed via the Committee’s website.

The Committee’s inquiries are based on the following Auditor-General reports:

Commonwealth Financial Statements

• No. 24 (2017–18), Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2017

Defence First Principles Review and Naval Construction

• No. 34 (2017–18), Defence’s Implementation of the First Principles Review
• No. 39 (2017-18), Naval Construction Programs—Mobilisation

Australian Government Funding—Schools and Indigenous Health

• No. 18 (2017–18), Monitoring the Impact of Australian Government School Funding
• No. 50 (2017-18), Primary Healthcare Grants under Indigenous Australians’ Health Program

Australian Government Security Arrangements—Personnel Security & Domestic Passenger Screening

• No. 38 (2017-18), Mitigating Insider Threats through Personnel Security
• No. 43 (2017-18), Domestic Passenger Screening—Follow-Up

Mental Health in the Australian Federal Police

• No. 31 (2017-18), Managing Mental Health in the Australian Federal Police

Foreign Investment Obligations in Residential Real Estate

• No. 48 (2017-18), Compliance with Foreign Investment Obligations for Residential Real Estate

Interested members of the public may wish to track the Committee via the website.

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THE Australian Retailers Association (ARA) islooking forward to seeing further growth for small businesses and increased employment within the industry as the second stage of the penalty rate reduction will take place this weekend.

Russell Zimmerman, executive director of the ARA, said last year’s decision to reduce Sunday penalty rates under the General Retail Industry Award 2010 (GRIA) from double-time (200%) to time-and-a-half (150%) was an incredible outcome for Australian retailers as it will provide long-term benefits for employers and employees in the industry.

“This progressive decision made by the Fair Work Commission will present numerous opportunities and bring further relief for retailers, their staff and consumers,” Mr Zimmerman said.

“We certainly await the 1^st of July, as this next stage in the penalty rates transition will reduce Sunday penalties to 180 percent for permanent staff, and 185 percent for casual employees, alleviating some of the constant cost pressures retailers are facing today.”

Over the last three years, the ARA has been working with the Fair Work Commission (FWC) to adjust Sunday penalty rates as this small reduction delivers long-term employment outcomes for the retail industry and allows retailers to open their doors for longer.

“On average, the retail industry is increasing 2.76 percent year-on-year, therefore, our primary concern is for our members, especially small businesses struggling to open their stores seven days a week,” Mr Zimmerman said.

“With April’s retail figures representing a dismal 2.62 percent year-on-year sales growth – less than the average retail turnover for the last 12 months – these lower wage costs will help small retailers meet their overheads, and open their doors to consumers, stimulating the economy.”

With Labor’s recent moves to block the penalty rates reduction the ARA are concerned that some people have misunderstood the recent changes to penalty rates – or worse, are being misinformed.

“Sunday penalty rates have not been abolished, nor will they be. We have simply reduced the rate from 200 percent to 150 percent as these high penalty rates were deterring employers from giving their staff Sunday shifts, and forcing some retailers to close their doors,” Mr Zimmerman said.

“This next phase in the penalty rates reduction is a small step for the industry but a giant leap for retailers who are currently unable to open their stores on Sundays.”

As the Penalty Rates Decision was made by the FWC, an independent umpire established by the Labor Party, and then upheld by the Federal Court, the ARA trust all sides of politics, including Bill Shorten, will support this revolutionary decision for the industry.

“This now historic decision will be influential in improving overall customer satisfaction, sustaining industry growth and putting Australia’s economy back on track,” Mr Zimmerman said.

“If we don’t have trust in our Federal system and our national workplace relations tribunal - that Labor implemented - how are we ever going to move forward and grow as a country?”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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